FIGHTING AGAINST THE FLOOD
There was a recent f lood of bad news for holders of embattled small caps, with SacOil finally giving an update as to what’s happening – and it’s not good. It plans to once again try and convert the Gairloch loan into 883m shares, this deal got scuppered by shareholders the last time it was voted on, and resulted in the majority of the board quitting and the share being suspended. SacOil then planned a rights issue of another 2.1bn shares at 27c per new share. It currently has 953m shares in issue, and these two deals will raise the number to almost 4bn leaving current sharehold-
26 ers diluted by a factor of 4! It’s like asking turkeys to vote for Christmas; although, in this case, it seems that if shareholders say no then there is no more SacOil.